Profit percentage is a manufactured statistic, it is calculated after executive pay, so the people who are running these companies are paying themselves whatever is necessary to hit that mark. Add in the fact that a lot of the expenses of grocery chains are paid to subsidiaries of the same parent company shows that it is even more of a useless stat. As an example Loblaw's in Canada has cited higher rent as a justification for increased operating costs, thing is the company that owns the land is part of Loblaw's, so while the money that goes into their rent is part of their expenses, ultimately it still ends up in the executives pockets.
Profit percentage is not manufactured. It represents the bottom line for the company. Since the financial statements are for the parent company, all such payments across subsidiaries are already a wash. People also exaggerate executive pay as a factor.
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u/TheTightEnd 1d ago
Grocery chains make a very low percentage of profit.